Comparing Fusemachines (NASDAQ:FUSE) and TSS (NASDAQ:TSSI)

Fusemachines (NASDAQ:FUSE) and TSS (NASDAQ:TSSI) are both small-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

46.8% of Fusemachines shares are owned by institutional investors. 31.8% of Fusemachines shares are owned by insiders. Comparatively, 16.0% of TSS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Fusemachines has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, TSS has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fusemachines and TSS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fusemachines	1	0	0	0	1.00
TSS	0	2	1	0	2.33

TSS has a consensus price target of $14.00, suggesting a potential upside of 36.72%. Given TSS’s stronger consensus rating and higher probable upside, analysts clearly believe TSS is more favorable than Fusemachines.

Profitability

This table compares Fusemachines and TSS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fusemachines	N/A	N/A	N/A
TSS	7.44%	19.22%	8.46%

Earnings and Valuation

This table compares Fusemachines and TSS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fusemachines	$7.71 million	1.86	-$930,000.00	($0.13)	-3.81
TSS	$245.72 million	1.18	$15.12 million	$0.48	21.33

TSS has higher revenue and earnings than Fusemachines. Fusemachines is trading at a lower price-to-earnings ratio than TSS, indicating that it is currently the more affordable of the two stocks.

Summary

TSS beats Fusemachines on 11 of the 14 factors compared between the two stocks.

About Fusemachines

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.

About TSS

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.